Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2010, for Hennesaw Lumber, Inc.

Hennesaw Lumber, Inc. estimates that its sales in 2000 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2010. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2009 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.

Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2010, for Hennesaw Lumber, Inc.

Hennesaw Lumber, Inc. estimates that its sales in 2000 will be $4,500,000. Interest expense is to remain unchanged at $105,000 and the firm plans to pay cash dividends of $150,000 during 2010. Hennesaw Lumber, Inc.'s income statement for the year ended December 31, 2009 is shown below. From your preparation of the pro forma income statement, answer the following multiple choice questions.

The pro forma cost of goods sold for 2010 is ________. (See Table 4.4)Answer| | | | | Selected Answer:| $3,825,000|| | | |
* Question 3
1 out of 1 points| || A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500. Although the firm paid in full for the merchandise during the year, it has yet to collect at year end from the customer. One possible problem this firm may face isAnswer| | | | | Selected Answer:| insolvency.|

YOU MAY ALSO FIND THESE DOCUMENTS HELPFUL

...﻿Exam 1 Practice Questions
1. Managerialfinance:
A) involves tasks such as budgeting, financial forecasting, cash management, and funds procurement.
B) involves the design and delivery of advice and financial products.
C) recognizes funds on an accrual basis.
D) devotes the majority of its attention to the collection and presentation of financial data.
2. Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise...

...﻿
QoS Techniques: MPLS
CET 2486C – Network Technologies
Professor:
November 27, 2012
Abstract
MPLS or Multi Protocol Label Switching is a networking technology that functions between layers 2 and 3 of the OSI model. MPLS constitutes of adding a label (sometimes called “Shim” because of their placement between layer 3 and layer 2 headers.) to the data package, this label contains special addressing and sometimes prioritization information. Because the MPLS label...

...ManagerialFinance – Problem Review Set – Dividends Policy
1)
If a firm adopts a residual distribution policy, distributions are determined as a residual after funding the capital budget. Therefore, the better the firm's investment opportunities, the lower its payout ratio should be.
a. True
b. False
2)
Even if a stock split has no information content, and even if the dividend per share adjusted for the split is not increased, there can still be a...

...Michelle Seefeld
ManagerialFinance
Learning Session 1 Written Assignment
Chapter 1 Discussion Question 6
What document is necessary to form a corporation?
A corporation is formed through articles of incorporation, which specify the rights and limitations of the entity (Block, Hirt, &amp; Danielson, 2011).
Web Exercise (pp. 22-23)
In summary, the credo for Johnson &amp; Johnson challenges the company to put the needs and well-being of the customers...

...The financial activities regard running a corporation. In other words, Corporate Finance is mainly concerned with maximizing shareholder value through long-term as well as short-term financial planning along with the implementation of different strategies. Thus, this includes everything from capital investment decisions to investment banking falls under the domain of corporate finance.
On the other hand, the shareholders own a corporation or you could say...

...Advance ManagerialFinance
Case 6: Deluxe Corporation
1. What are the risks associated with Deluxe’s business and strategy? Is Deluxe’s current
debt level appropriate?
Deluxe Corporation was once the largest printer of paper checks in the United States. However, around the past years it started to face difficulties primarily on its sale and earnings growth primarily because of alternative payments systems as online payments, credit and debit cards, etc....

...$1 million on R&D associated with the new project.
d. The company spent and expensed $10 million on a marketing study before its current analysis regarding whether to accept or reject the project.
e. The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year.
__c__ 4. Dalrymple Inc. is considering production of a new product. In evaluating whether to go ahead with the project, which of the following...